Report for the Academic Years 1987-1988 and 1988-1989

D •
E •
RETIREMENT
LONG-TERM
DEBT
NOTES TO FINANCIAL STATEMENTS
A summary of long-term debt at June 30, 1989 follows:
7.804%, 1980 - NJEFA $ 7, 865, 000
Less unamortized bond discount [83, 121]
Total long-term debt $ 7,781,879
In July 1980, the Institute received proceeds of the Newjeney Educational Facil-
ities Authority [NJEFA] offering of S8, 775, 000 Revenue Bonds, 1980 Series A,
the Institute for Advanced Study Issue. The proceeds were used for the construc-
tion of the West Building and the Dining Hall, as well as other construction and
major remodeling projects of Institute facilities.
The bonds are dated July 1 , 1 980, bear interest, payable semi-annually, at the net
average annual rate of 7.804%, are subject to redemption at various prices and
require principal payments and sinking fund instalments through July 1, 2011.
Bond principal in the amount of $145, 000 matured on July 1, 1989, and bond
pnncipal m the amount of $155, 000 [1990], $165, 000 [1991], $175, 000 [1992]
and $185, 000 [1993] will mature on July 1 of the designated years. The obUga-
tion to pay the Authority on a periodic basis, in the amounts sufficient to cover
principal and interest due on the bonds, is a general obUgation of the Institute
and is collateralized by United States Treasury Notes, 8.875%, due February 15,
1996, with an aggregate face amount of $8, 625, 000.
Interest expense on long-term debt for the year that ended June 30, 1989 was
$624, 443, of which $302, 641 is payable at June 30, 1989.
PLANS
Separate voluntary defined contribution retirement plans are in effect for faculty
members and eligible staff personnel, both of which provide for annuities which
are funded with the Teachers Insurance and Annuity Association and/or the
CoDege Retirement Equities Fund. Contributions for the year ended June 30,
1989 amounted to $616,000.
In addition to the formal plans, the Board of Trustees or the Director has, at var-
ious times, authorized the payment of pensions to certain members, employees
and the widow of a deceased member. Total pension payments which aggregat-
ed $86,000 for the year ended June 30, 1989 have been charged to expense, and
no reserves have been provided for pensions payable in subsequent years.
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